Came across an interesting read couple of days ago which might convince those on the fence that "We are in the right industry, At the right time". Read on for highlights..
Indian food market is likely to triple to $900 billion by 2020 from the current $300 billion, according to an industry report.
"Accounting for 16 per cent of the world population and 12 per cent of the world food production, India is one of the largest producers and consumers of food in the world.
- Indians spend around 35 per cent of their total spend on food - $300 billion annually that will grow to about $900 billion by 2020," a Boston Consulting Group report 'India Food Processing: Mission 2020' said.
- The report adds food processing levels are substantially lower than most emerging and developed economies with only six per cent of the agricultural produce in the country being properly processed.
- Of the total food consumed today ($300 billion), 20 per cent is processed and it is expected to increase to 35 per cent (of $900 billion) by 2020.
"Food processing system needs to be remodeled. We have to figure a way to invest more in people and capacity among other things," BCG India principal Nimisha Jain said. "Food processing is important as it helps to extend shelf life and reduces wastage, thereby increasing food supply," Danone Director Eric Soubeiran said.The domestic food processing industry is likely to invest Rs 14,000 crore in the next two years, according to FICCI. Most of the investment is likely to come from the existing companies.
"It is difficult to estimate what will be the investment cost but company wise, Danone is setting up manufacturing unit, Britannia is going towards north-east, we at Nestle are doubling all our capacities. So there is tremendous interest in investing," remarked Nestle chairman and MD Antonio Waszyk.
The report also found that last year there was a shift from pulses to poultry, and this year it is towards fruits and vegetables. Fruits and vegetables today account for 25 per cent of the food consumed and by 2020 it is likely to be 40 per cent of the food consumed.
Original article may be found at :
http://www.indianexpress.com/news/indian-food-market-to-treble-to-900bn-by-2020-report/876810
http://www.indianexpress.com/news/indian-food-market-to-treble-to-900bn-by-2020-report/876810
Really a Good one thanks for posting
ReplyDeleteMinistry of Food Processing Industries has also pointed out a few important aspects in the last weeks, one being FDI in food processing.
ReplyDeleteTo increase the Foreign Direct Investment (FDI) in the food processing sector, the Government had permitted 100% FDI in all the processed food items through the automatic route, which means that there is nor approval required, companies are free to decide. This happened several years back already.
The total inflow of FDI in Food Processing Sector during the last 3 years gives a mixed picture, it was 858 RS crore (USD 188 million) in 2010-11, 1314 Rs. crore (USD 279 million) in 2009-10, after 456 Rs. crore (USD 103 million) in the year 2008-09.
Source: www.foodindustryindia.com, dtd. 06-01-2012
Saumil Patel
Dy. Manager - Ops.
Atcomaart Services Limited
www.atcomaart.com
Thanks, to sharing the Indian food market report . India is one of the largest manufacturers and consumers of foods in the world. Food handling is important as it helps to boost life expectancy and decreases waste, thereby increasing food supply. It contains dairy products, eggs, fruits and vegetables, cereals and pulses, luxury foods etc.
ReplyDeleteThanks for the link. How are you associated with this entity that sells reports ? Or are you into food processing/impex ?
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